Government Notifies Capital Gains Scheme, Boosts Digital Payment Options

The government has introduced the Capital Gains Accounts (Second Amendment) Scheme, 2025, bringing significant updates to the 1988 framework that allows taxpayers to temporarily hold capital gains while arranging reinvestment.  

The revised scheme, effective from 19 November, enables digital transactions, online documentation and remote account closure for users who rely on this mechanism when capital gains cannot be reinvested before the tax filing deadline. 

New Digital Payment Options and Documentation Updates 

The amendment permits a wide range of electronic payment methods for deposits into CGAS accounts, including credit and debit cards, net banking, IMPS, UPI, RTGS, NEFT, and BHIM Aadhaar Pay. The effective date for exemptions under Sections 54 to 54GB will now be the date the deposit office receives the electronic payment.  

The update also recognises electronic account statements as valid records for verification, withdrawals, and updates. Forms associated with opening and operating CGAS accounts now include fields for electronic transaction references such as RTGS, IMPS and NEFT numbers. 

Expanded List of Deposit Offices and New Closure Rules 

The definition of a deposit office has been widened to include any authorised banking company notified by the government, instead of limiting operations to SBI and nationalised banks. From 1 April 2027, CGAS accounts must be closed entirely through electronic filing using either a digital signature or an electronic verification code.  

The Principal Director General of Income Tax (Systems) has been empowered to specify digital filing processes, verification standards and data protocols for Forms G and H. The amendment also extends the scheme to gains covered under Section 54GA relating to the transfer of assets when shifting an industrial undertaking to an SEZ. 

Read More: Government Appoints Sandip Pradhan as SEBI Whole Time Member for a 3-Year Term! 

Conclusion 

The revised Capital Gains Accounts Scheme introduces digital capabilities aimed at simplifying deposits, documentation and account closure processes. With expanded payment options and broader institutional participation, the updated system is positioned to offer taxpayers a more efficient and accessible way to manage capital gains during reinvestment. 

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